Demand for mortgage loan applications fell 5.7 percent in the last week of February, according to a survey from the Mortgage Bankers Association (MBA), and the industry group pointed the finger squarely at higher interest rates.
“The 30-year fixed rate increased to 6.71 percent last week, the highest rate since November 2022, which drove a 6 percent drop in applications," said Joel Kan, vice president and deputy chief economist at MBA, in a press release. After a brief revival in application activity in January when mortgage rates dropped down to 6.2 percent, there has now been three straight weeks of declines in applications as mortgage rates have jumped 50 basis points over the past month.”
The trend is putting downward pressure on both purchase and refinance applications, with the former down 44 percent from a year ago and the latter down 77 percent from a year ago.
Both indexes hit a 28-year low for the second consecutive week.
Kan added that new "data on inflation, employment, and economic activity have signaled that inflation may not be cooling as quickly as anticipated, which continues to put upward pressure on rates.”
Unpacking Jerome Powell’s surprise rate cut with Tematica Research CIO Chris Versace—what it signals, who wins, who loses, and what smart investors do now.
Ben & Jerry’s co-founder Jerry Greenfield is leaving the ice cream brand after 47 years. He says the freedom the company used to have to speak up on social issues has been stifled
The Trump administration has issued its first warnings to online services that offer unofficial versions of popular drugs like the blockbuster obesity treatment Wegovy.
Oracle soars as it cashes in on the AI boom, Plus: Starbucks shares continue to fall under its new CEO, and does anybody actually want a new iPhone Air?
Swedish buy now, pay later company Klarna is making its highly anticipated public debut on the New York Stock Exchange Wednesday, the latest in a run of high-profile initial public offerings this year. The offering priced at $40 Tuesday, above the forecasted range of $35 to $37 a share, valuing the company at more than $15 billion. The valuation easily makes Klarna one of the biggest IPOs so far in 2025, which has been one of the busier years for companies going public. Other popular IPOs so far this year include the design software company Figma and Circle Internet Group, which issues the USDC stablecoin..
